$18 Million Available to Farmers Wanting
to Add Value to Farm Products
Minnesota Farmers Eligible for Federal Value-Added
Producer Grants Program
CONTACT: Terry VanDerPol, Land Stewardship Project, 320-269-2105
5/8/09
MONTEVIDEO, Minn. — The USDA announced this week that it is accepting applications for a program targeted at farmers who want to add value to what they produce on their farms. The Value-Added Producer Grants Program (VAPG) supports farmers or groups of farmers adding value to agricultural products prior to going to market.
Passed in the 2008 Farm Bill and provided with $18 million in funding this year, VAPG is available through a competitive grants process offered by the Rural Business–Cooperative Service of USDA. Applications will be accepted from individual farmers and ranchers, groups of farmers and ranchers, farmer or rancher cooperatives, and farmer- and rancher-owned agricultural entities.
The deadline to submit applications is July 6 for most funding and June 22 for applications that target “mid-tier value chains” and those which serve beginning farmers and ranchers and socially disadvantaged farmers.
“It’s good that this program is now out there and available for farmers.” said Terry VanDerPol, a western Minnesota farmer and director of the Land Stewardship Project’s (LSP) Community Based Food and Economic Development program. “Unfortunately, the period to submit applications is much too short — only 45 days in some cases — and there are other serious issues in the newly released program guidelines.”
This week’s announcement outlined VAPG guidelines for both planning grants (maximum of $100,000) and working capital grants (maximum of $300,000). USDA’s announcement also described set-aside provisions for beginning farmers and ranchers and socially disadvantaged producers, as well as “mid-tier value chains” projects. Ten percent of total funding is available for applications submitted by beginning farmers and ranchers and socially disadvantaged producers. Another ten percent is set-aside for mid-tier value chain projects.
Setting aside program funds for these two purposes was backed by LSP and supported by U.S. House Agriculture Committee Chair Collin Peterson (D-MN). “Mid-tier value chains” are aimed at building supply networks that link independent producers with businesses and cooperatives in a way that strengthens profitability of small- and medium-sized farms and ranches. Such systems include strong farmer engagement in the value chain’s marketing strategy.
“In a mid-tier value chain the farmer is not an anonymous, lowest-price input supplier, but is engaged in the process from farm-to-fork. This set-aside is a new provision in the program which expands who producers can engage in their projects,” said VanDerPol. “Peterson was key is securing this approach, which can now be used by farmers to bring more partners into their value-added ventures.”
Since the 2008 Farm Bill was passed into law, LSP and its allies have focused on VAPG funding and implementation in fiscal year 2009.
“Linking farmers with other parts of the food chain through VAPG-funded networks could go a long ways toward revitalizing our food system as well as our rural communities,” said VanDerPol. “If you want to talk about rural economic development and jobs, as well as strengthening family farms and rural communities, support for VAPG and programs like it are key.”
For more information on VAPG, see http://edocket.access.gpo.gov/2009/pdf/E9-10424.pdf or www.rurdev.usda.gov/rbs/coops/vadg.htm.
